The Securities and Exchange Commission has entered an Order permanently barring former Wells Fargo Advisors broker John Gregory Schmidt, of Dayton, Ohio, from the securities industry. The SEC’s Order includes findings that Mr. Schmidt, while a registered representative of Wells Fargo Advisors, misappropriated $1.3 million from the accounts of his clients, most of whom were elderly.
The SEC Complaint alleges that between 2003 and October 2017, Schmidt stole from seven of his brokerage customers and transferred money to the accounts of at least ten other customers whose accounts were experiencing shortfalls.
According to the SEC, Schmidt sent customer statements which “grossly overstated their account balances and falsely assured them that their investment returns could fund their withdrawals without jeopardizing their principal.”
Making matters worse, the SEC found that several of Schmidt’s customers were suffering from Alzheimer’s disease or other forms of dementia. Schmidt received over $230,000 in commissions from customers who were associated with the misappropriated funds.
If you or someone you know lost money as a client of John Gregory Schmidt or Wells Fargo Advisors due to unsuitable, misrepresented, or unauthorized transactions, please call the Frankowski Firm at 888.741.7503 or fill out this contact form.